Erste Plans SRT on €10 Billion of Loans for Poland M&A Deal

Erste Group Bank AG is working on a significant risk transfer linked to more than €10 billion ($11.6 billion) of loans as the Austrian bank seeks to free up capital for its largest ever acquisition.

The Vienna-based lender is sounding out investors for the SRT tied to a portfolio of loans in small- and mid-sized companies in Austria, according to people familiar with the matter, who asked not to be named because details are private. The transaction may be carried out via a friendly format for insurers, they said.

The potential deal, which could be one of the largest SRTs ...